"U.S. Implements Final Rules to Safeguard $52 Billion Chip Funding from China"

The U.S. Commerce Department has finalized rules to prevent China and other countries deemed as national security concerns from benefiting from $52.7 billion in subsidies for semiconductor production. The regulations limit recipients of U.S. funding from investing in expanding semiconductor manufacturing in foreign countries of concern, such as China and Russia, and restrict recipients from engaging in joint research or technology licensing efforts with foreign entities of concern. The rules also prohibit material expansion of semiconductor manufacturing capacity in foreign countries of concern for 10 years and classify certain semiconductors as critical to national security, triggering tighter restrictions. Commerce Secretary Gina Raimondo emphasized the need to prevent any funding from helping China gain an advantage and stated that violations of the restrictions could result in the clawback of federal awards.